PROTOCOL
At the moment of signing the Convention between the Czech Republic and the Republic of the Philippines for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall form an integral part of the Convention.
(1) The provisions of this Convention shall not apply to income derived by companies or other persons enjoying a special tax treatment by virtue of the laws or the administrative practice of either of the Contracting States as long as the rates of tax applicable to these companies or persons do not exceed the limitations provided for in the Convention.
(2) Benefits provided under this Convention shall not be granted also to companies of either Contracting State if the purpose of the establishment of such companies was solely to obtain benefits under this Convention that would not otherwise be available.
(3) The provisions of this Convention shall in no case prevent either Contracting State from the application of the provisions of its domestic laws aiming at the prevention of fiscal evasion, in particular, but is not limited to, the provisions on thin capitalisation, transfer pricing and substance over form.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.
DONE in duplicate at Manila this thirteenth day of November 2000 in the English language.
FOR THE CZECH REPUBLIC:
PAVEL MERTLIK
FOR THE REPUBLIC OF THE PHILIPPINES:
JOSE T. PARDO